Taylor predicts smooth deficit adjustment in US

US Treasury Under secretary John Taylor has said he expects a smooth adjustment in the large US current account deficit. While some have bemoaned the increase in the deficit, Taylor said it was good news.

The US as well as its major trading partners were taking steps to reduce the current account gap by increasing US savings and global economic growth, he said.

"The beneficial impact of these positive measures may take time to materialize, but there is no reason to expect that financing and adj